When we’re young, it’s easy to be carefree and live life without caution, particularly regarding finances.
In your 20’s, it was probably not that big of a deal to blow a few hundred dollars on a weekend getaway or get a few pairs of shoes that you really didn’t need. But when you reach middle-age, and head into your golden years, money matters become much more fundamental to your well-being.
As humans, we generally don’t realize that we’re continuously aging, constantly moving onward along a linear timeline. Before you even realize it, you wake up one day and you’re in your mid-forties wondering where the time has gone.
This is even more sobering when you hit 60 and you begin nearing retirement age.
The good news is that there are several things you can do to ease the financial worry that will help as you get older:
Re-evaluate Your Expenses
You’ve probably been going through the motions when it comes to paying bills. Getting into a routine for paying bills on time is a good thing, but consider the fact that you could be cutting costs in certain places instead of paying the same amounts.
Fortunately, there are a couple of avenues for cutting costs that you can explore.
We all need to be insured. If you have a car and you drive, insurance is a must. And, though you may have an automobile insurance company that you’ve used for many years, you should consider comparing quotes for car insurance to see all your rate options… you never know, it just might save you some extra money.
Quotes are usually free with most companies, and they’re worth checking out especially if you could stand to save a little cash.
Just as with automobile insurance, health insurance is also a place where you can cut corners and save a little money if you shop around.
You might have a nice retirement package that has great benefits, but if not, consider shopping around for cheaper or more affordable health insurance. In your later years, health coverage is a must-have. But, that doesn’t mean you can’t save money on a quality policy that you can better afford.
Maybe you’re not quite ready to retire just yet. But, this doesn’t mean that you can’t get a quality plan in place for when you do retire.
Most employers offer you a retirement package as long as you’ve been with the company for a certain period of time. Whether this is a 401K package, company stock, or a comprehensive pension plan, it doesn’t mean that this is the route that you have to take.
Today you have investment options such as an Investment Retirement Account (IRA), and there are several of these to choose from ranging from little to no risk, up to high risk. Of course, the higher the risk, the greater the return, but the option is there to invest if you have a portfolio to work with.
Maybe you have children, and all of your children grew up in the home that you still reside in. But, those children are all grown now and live on their own. Basically, a big house with room for many people might not be the best place for you to live.
If you own your own home, consider selling and moving into a smaller dwelling.
You can use the money from the sale to add to your savings account and allow it to accrue interest, essentially earning you a profit every year by just letting it sit in your savings account.
Downsizing can also include selling furniture, clothes that you no longer wear, and tools that you no longer use. With online secondhand sales markets so abundant these days, it’s easy to sell these items quickly if you want to pad your savings account a little bit.
Retirement is an emotional time. Many people in their later years aren’t accustomed to not working. And, getting used to not having an occupational obligation can take some time.
Above all, assess your retirement readiness and be sure that you’re ready to go into retirement and that you’re well-prepared. Maybe you’ll want to pick up an easy part-time job just to have something to keep you occupied.
Regardless, make decisions that will help you slip into retirement with ease, and without financial worry.
*Photos by Karolina Grabowska